[ET Net News Agency, 19 July 2018] Citi Research trimmed its target price for Beijing
Enterprises Water (BEW)(00371) to HK$5.5 from HK$7, and reiterated its "buy" rating.
The research house cut its 2018-20 forecasts by 4-9% for margin contraction resulting
from issuance of asset backed notes, augmented sewage treatment expense, less profitable
of new projects, etc.
It forecast its net profit to grow 14% yoy to HK$2,182m in 1H, with such growth lower
than its 2018 net profit growth target of 20-25% yoy, due to margin cuts applicable to its
PRC water treatment services, water distribution services, and construction services for
water environmental renovation business.
Its 1H results are expected to be reported by end August. (KL)